BEFORE YOU SPEND OR BORROW >>BEWARE ,,,Surging living costs have forced almost eight out of 10 Irish people to changed their spending habits in the past six months. Nearly half are fearful about the state of their personal finances.
The results are from the latest PwC Irish Consumer Insights Pulse Survey and suggest that what had been booming levels of consumer spending, boosted by Covid- era savings, could moderate this year.
The research found 79pc of Irish consumers have changed non-essential spending in the last six months. Almost one in five (19pc) Irish consumers report they are extremely concerned about their financial situation while another 26pc are very concerned.
Almost all Irish consumers say they will adopt cost-saving behaviours over the next six months including a big drop in the numbers planning home improvement work this year (26pc versus 34pc) and sharp drops in planned spending on fashion and entertainment.
That is at least partly because almost half of those surveyed expect they will have to spend more on groceries.
For retailers the research also provides insights that flesh out evidence from elsewhere that the big shift to digital retail during the Covid-19 pandemic has not been sustained, in part because of consumer preference.
A majority of respondents said identifying knowledgeable and helpful sales assistants was the most appealing aspect of in-store shopping, although self-service check-outs and click-and-collect ordering are also popular.
On the other hand, while consumers trust retailers more than they do social media sites, a hefty 38pc said they rarely or never buy from online websites as a result of data privacy concerns. Only 14pc of Irish consumers have used the Metaverse platform for entertainment, virtual experiences or purchasing products in the last six months, lower than global peers (26pc).
The head of PwC Ireland’s retail and consumer practice, John Dillon, said the research highlights a heightened level of concern among consumers and shows they are very clear about the actions they will take to manage their budgets.
“For retailers to thrive in this challenging environment and maintain consumer engagement, they must remain focused on delivering value to the consumer, invest in the in-store store customer experience and ensure their omni-channel propositions deliver a frictionless, customer-centric experience,” he said.
Despite the pressure on household budgets, around half of Irish consumers still plan to take an international flight (45pc), stay in a hotel (52pc) and take a staycation (44pc) in the next few months.
But spending habits are changing, with savvy shoppers here especially focused on making savings by buying own-brand products or shopping around for promotions and special offers or cheaper brand alternatives.
